Zar Property buys Chase building opposite Empire State
December 21, 2009 05:30PM By Adam Pincus
Dario Zar, president at Zar Property NY, and 349 Fifth Avenue (Building photo source: PropertyShark)
The Midtown-based real estate firm Zar Property NY bought the JPMorgan Chase building at 349 Fifth Avenue at 34th Street across from the Empire State Building, for just under $20 million, David Zar, a vice president at Zar Property NY, told The Real Deal today.
The purchase closed Dec. 15, Zar said, but he did not immediately provide an exact sale price. The sale has not yet appeared on the city's public property Web site Acris.
The price of about $300 per square foot for the 64,000-square-foot building was far higher than the bank received for a 1.1 million-square-foot property it is selling Downtown. JPMorgan Chase is in contract to sell 4 New York Plaza at Water Street for $108 million, or about $99 per square foot. The building was part of a nearly two-dozen-building portfolio that was put on the market earlier this year.
The Fifth Avenue building merited the $300 price per foot, he said, because of the location across from the Empire State Building and the quality of the space, which was turned over fully furnished.
The top 43,000 square feet of the eight-story vacant building housed the consulting and executive offices for a lending division of the bank, Zar said.
In addition, the bank signed a lease-back deal for the retail space occupying the ground floor, basement and mezzanine, he said.
Leasing broker Dirk Hrobsky, managing director at commercial firm UGL Equis, said comparable space in that area could fetch rents of under $40 per square foot. He was not involved with the sale. Zar declined to give a proposed asking rent.
A broker familiar with the Fifth Avenue deal, who asked not to be identified, said there were multiple bidders for the asset, and Zar Property won because it was "the most serious buyer." Another broker said a client offered about $16 million for the building, but lost out. A report in the trade weekly Real Estate Investment & Finance from November said the bank was seeking at least $13 million for the property.
John Kenyon, a senior vice president at Houlihan Lokey, which represented Chase, declined to comment, as did a spokesperson for JPMorgan Chase.
Family-owned Zar Property, led by president Dario Zar, David's uncle, has bought other properties since the economy weakened, including a Soho building for $12.65 million in January. It owns about four million square feet of commercial and residential property nationwide, David Zar said.
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Comments
Anonymous
Sounds like a fix to me. Somebody from Chase left with a brief case filled with cash.
Comment #1 Posted By: Anonymous 12/21/09
Anonymous
Rumors have the deal at $18 million. At that given price, it was a correct price. $300 psf is what things are selling at in that area. Not a steal, but not a ripoff either.
Comment #2 Posted By: Anonymous 12/21/09
Anonymous
I was up there over a year ago when I bought my house - really nice office.
Comment #3 Posted By: Anonymous 12/21/09
Anonymous
who repped Zar?
Comment #4 Posted By: Anonymous 12/21/09
Anonymous
#2 is right on. Seems like deal is about market. No one stole anything or overpaid here.
Comment #5 Posted By: Anonymous 12/21/09
Anonymous
This would have sold for double the price 2 years ago. Good Buy.
Comment #6 Posted By: Anonymous 12/21/09
Arik Lifshitz
Congratulations, Best of luck!
Comment #7 Posted By: Arik Lifshitz 12/22/09
Anonymous
I had a bid in @ 18 mill, and didnt get it!!!!!!!!!!
Comment #8 Posted By: Anonymous 12/22/09
Anonymous
I would of bid $ 22 million, but they didn't even advertise this auction.
Comment #9 Posted By: Anonymous 12/22/09
Anonymous
what else is Chae selling? How are they selling? is there a broker?
Comment #10 Posted By: Anonymous 12/22/09
Anonymous
this is the problem n NYc, the banks have their friends and the friends know to bring brief cases full of cash. $ 18 million for that building is a joke. that is what apartments are selling for.
Comment #11 Posted By: Anonymous 12/22/09
Anonymous
is there a consipiracy?
Comment #12 Posted By: Anonymous 12/22/09
Anonymous
stupid seller could have waited another two years for the price to reach 25M, the broker is going to get blacklisted for not selling top dollar on this deal
Comment #13 Posted By: Anonymous 12/22/09
Anonymous
#10, read the article: Chase is represented by "John Kenyon, a senior vice president at Houlihan Lokey, which represented Chase"
Comment #14 Posted By: Anonymous 12/22/09
Anonymous
The broker is a real moron. Never going to represent me on this one.
Comment #15 Posted By: Anonymous 12/22/09
Anonymous
you don't mess with the ZAR
Comment #16 Posted By: Anonymous 12/22/09
Anonymous
hola hookey? never heard of this broker.
Comment #17 Posted By: Anonymous 12/23/09
Anonymous
Not in this brokers click, never saw it and I have been looking for this kind of product for two years. I do not understand how this broker could not have shown it to the entire industry to get the best price, eventhough it may have been a fair price, but maybe not the best price for its client. What is the job of a broker in this situation? What do you think?
Comment #18 Posted By: Anonymous 12/25/09
Anonymous
This property was sold at market price. Don't forget that the buiding is nearly 75% vacant. You need to add at least $100 per square foot for tenant improvements and leasing commissions & free rent to lease up that space. The Water Street property is a much better deal for the buyer. I understand that JP Morgan Chase will lease back the entire building for 15 years. That's a great deal.
Comment #19 Posted By: Anonymous 12/26/09